CAPITAL GAIN URGENT QUERY

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This discussion clarifies how capital gains tax indexation is calculated for property sales. For a flat purchased over several years, indexation is based on the year the payment process began, not the final registry date. Similarly, if land was allotted earlier and construction followed, indexation uses the land allotment year. It's also noted that for properties, you can use the Fair Market Value as of April 1st, 2001, or the actual cost, whichever is more beneficial for calculating capital gains.

CA Parul Saxena

CA Parul Saxena (Querist)

13 June 2022 PAYMENT FOR THE FLAT WAS STARTED IN 2010-11 AND IT WAS COMPLETED ON 2017-18. REGISTRY WAS MADE IN 2017-18.
NOW WE WANT TO SELL THE FLAT THEN FOR THE PURPOSE OF CAPITAL GAIN INDEXATION WILL BE DONE ON THE BASIS OF 2010-11 OR 2017-18?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

13 June 2022 On the basis of 2010-11 date of allotment capital gains can be calculated.

CA Parul Saxena

CA Parul Saxena (Querist)

14 June 2022 if land was alloted in 1997 and construction was done on it and in 2000 sale deed was made then now for the purpose of capital gain indexation to be done on which basis 1997 or 2000?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 June 2022 It's on 1997 basis
.

CA Parul Saxena

CA Parul Saxena (Querist)

14 June 2022 thank you so much sir then please tell me the CII for the fy 1997-98 and fy 2022-23..CII was changed in budget 2017 so we have to take as per budget 2017?

CA Puja Sharma

CA Puja Sharma (Expert)

14 June 2022 Take CII of 1997.
However, in the case of immovable property you have the option to take FMV as on 1.4.2001 or actual cost whichever is beneficial.

CA Parul Saxena

CA Parul Saxena (Querist)

14 June 2022 please tell the CII for 1997 i want to take cost

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)

14 June 2022 In such a case you have to adopt CII as on 1st April 2001 and adopt market value as on 1st April 2001.

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